Catchain 2.0 upgrade pushes TON blockchain to achieve finality under one second
The Open Network's layer-1 blockchain protocol has reduced transaction settlement times from approximately 10 seconds following the implementation of its Catchain 2.0 consensus mechanism.
The Open Network (TON), a standalone layer-1 blockchain protocol featuring integration with Telegram's messaging platform, has announced a dramatic reduction in block processing times to 400 milliseconds following the deployment of its Catchain 2.0 consensus mechanism upgrade.
According to Thursday's announcement from TON, payment transactions now achieve finality in approximately 1 second, trading activities are completed in "real time," and decentralized applications will now function at performance levels matching conventional applications.
The acceleration in block processing times results in increased validator compensation, as a greater number of blocks are appended to the blockchain. According to TON, the network's yearly inflation rate is expected to surge six times, climbing from roughly 0.6% to 3.6% after the implementation of this upgrade. This inflation metric reflects the ongoing creation and destruction of Toncoin tokens throughout its ecosystem.
"More blocks mean more validator rewards, which create stronger staking incentives and bring more TON into the network,"
TON's announcement
This enhancement is built upon TON's Catchain consensus mechanism, initially introduced in 2020, and delivers nearly instantaneous transaction settlement to the blockchain network that is embedded within a platform serving over 1 billion users across the globe.
According to data from CoinMarketCap, TON was experiencing an upward movement of 2.3% to reach $1.28 during Thursday's trading session. Trading volume reached $130.1 million, representing an increase exceeding 35%. The cryptocurrency's total market capitalization stood at $3.17 billion.
Telegram provides users with a lifeline to communicate and send crypto worldwide
According to Pavel Durov, who co-founded Telegram, substantial populations in both Iran and Russia continue utilizing the platform despite official governmental prohibitions in those nations.
Attempts to ban Telegram have proven counterproductive, as individuals work around national internet firewalls and government-mandated online censorship through the deployment of virtual private networks (VPNs), which conceal IP addresses and enable users to access restricted online content.
"The government hoped for mass adoption of its surveillance messaging apps, but got mass adoption of VPNs instead,"
Pavel Durov
The connection with TON allows Telegram's user base to transmit cryptocurrency payments straight through the messaging platform to fellow users, which includes commercial entities.
During February, Telegram's integrated cryptocurrency wallet unveiled self-custodial vault functionality enabling users to generate yields on Bitcoin (BTC), Tether's USDt stablecoin (USDT) and Ether (ETH).
In the early part of this month, the wallet introduced perpetual futures trading capabilities for users operating directly through the Telegram application.
This integration was established in partnership with Lighter, a perpetual decentralized exchange, and enables perpetual futures trading spanning numerous asset categories, encompassing crypto, equities, commodities, precious metals and energy.